Whether you wish to charge based on gross or net prices, you can now specify this individually for each document. Read on to see how!
To start with: if you always invoice based on net or gross price, you only need to specify it once under “Settings > Taxes”. For you, nothing changes at all. Things look different if you have business as well as private customers in your everyday business at the same time. While businesses request a net invoice, in the B2C sector invoices with gross prices are customary.
From now on you can specify individually whether you wish to bill gross or net for each document – invoice, quote, credit note or order confirmation. For this purpose, a new selection pad has been included in the editing screen. The default setting for the selection pad is the price basis specified under “Settings > Taxes”.
Gross and net in practice
For example, if you buy something in a supermarket for €11.90, you’re buying merchandise at a net value of €10.00. €1.90 worth of VAT is added to the price. The amount on the price tag is the gross price, i.e. the price including taxes. In Billomat you would use the gross price as the basis here and show €11.90 as the price. Billomat, therefore, uses €11.90 as the gross value, subtracts 19% VAT and you end up with the net value of €10.00.
In gross invoicing, the stated price is used as the gross price. You arrive at the net price by subtracting the tax.
Things look different from invoices for business customers. As the price for them without tax is relevant, the net price (= price without VAT) is normally shown here. If you now go shopping at a wholesaler instead of a supermarket, you will usually see the net price displayed at the point of sale. In our example, the merchandise would cost €10.00. The VAT of €1.90 is added at the checkout, so you ultimately have to pay €11.90 here too.
If you’d like to issue net invoices, simply choose net as the price basis for the invoice. Now you can show an amount of €10.00 as the price. Billomat then adds the tax to it in order to arrive at the gross amount.
With net invoicing the stated price is used as the net price. The gross price is attained by adding the tax to it.
Even though this sounds complicated, it is in fact nothing of the sort. For many users, nothing at all will change. However, if you have to write an invoice based on a gross price in an exceptional case, then this new function will certainly save you some work, manual conversions and rounding errors.